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O'Reilly earns $103M in 1Q

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O'Reilly Automotive Inc. (Nasdaq: ORLY) posted first-quarter net income of $102.5 million, a 5.1 percent increase from $97.5 million earned in the first quarter last year.

Earnings per share for the Springfield auto parts company were 72 cents during the quarter, a 2-cent increase from first-quarter 2010, according to a company news release.

Earnings were down from fourth-quarter 2010 net income of $105.8 million, or 74 cents per diluted share.

First-quarter 2011 highlights:
  • Sales increased 8 percent to $1.4 billion from $1.3 billion in the same quarter a year ago.
  • Cost of goods sold, including warehouse and distribution expenses, was $713 million, leaving a gross profit of $669.8 million.
  • Employee count increased to 47,480 from 45,271 in first-quarter 2010.
  • The company opened 55 new stores during the quarter and closed 12, for a total store count of 3,613 in 39 states.
  • Assets were $5.2 billion by the end of the quarter, compared to $5 billion in fourth-quarter 2010 and $4.8 billion in first-quarter 2010.
"We are happy to report another very profitable quarter," O'Reilly Co-President and CEO Greg Henslee said in the release. "Our 14.2 percent operating margin is the result of our strong comparable store sales growth coupled with our relentless focus on expense control."

Following a Jan. 11 board of directors decision, the company repurchased 2.6 million shares of its common stock at an average price of $55.54 during the first quarter, for a total investment cost of $145 million, according to the release.

"We will continue to prudently use cash generated from operations first to reinvest in the growth of our business and second to opportunistically execute our share repurchase program to enhance shareholder value," Henslee said in the release.

The repurchase program is one portion of a two-part financial plan approved by the board. To improve its capital structure, the company plans to repurchase up to $500 million worth of shares within three years and sell $500 million worth of senior notes to be paid back in 10 years, according to Springfield Business Journal archives.

O'Reilly Automotive Inc. shares were trading at $58.35 as of 9:34 a.m., compared to a 52-week range of $45.22 to $63.05.[[In-content Ad]]

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